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Plenty of people will still play on fairly old CRT sets. Alot of kids with consoles certainly have to put up with portable TV's in their rooms. I'm alright in having a good quality PC monitor hooked to my 360 via VGA so I have my HD sorted!

I wish this same encouragement happened for 360 games themselves, it's great to see that at least with XBLA, non-HD owners aren't being completely screwed over.